The McClatchy Company
MNI announced today that it has reached a definitive agreement to
sell the Anchorage Daily News to Alaska Dispatch Publishing LLC for $34
million. The transaction is expected to close in the second quarter of 2014.
"The Anchorage Daily News is a profitable newspaper that makes us proud
journalistically," said Pat Talamantes, McClatchy's president and CEO. "We
weren't looking to sell the Daily News, but after Alaska Dispatch Publishing
approached us, we saw advantages to local ownership in this case and
opportunities for consolidation that would strengthen both news
organizations."
At the conclusion of the transaction, McClatchy will publish 29 daily
newspapers and their affiliated print and digital products in 28 U.S.
markets in 14 states.
"We are proud to return the Anchorage Daily News to Alaska ownership once
again," said Alice Rogoff, owner of Anchorage-based Alaska Dispatch
Publishing LLC, which publishes the AlaskaDispatch.com news website founded
in 2008. "Across the country over the past few years, we've seen several
daily newspapers successfully transition to local ownership. We look forward
to working with the talented team at the Daily News to help build its
future."
McClatchy acquired an 80 percent ownership stake in the paper in January
1979. It represented McClatchy's first publishing foray beyond California's
Central Valley. At the time, the morning Anchorage Daily News was in
financial trouble and much smaller than its afternoon rival, the Anchorage
Times.
The Anchorage Daily News ultimately prevailed to become the largest daily
newspaper in the state, but only after surviving an old-fashioned,
bare-knuckled newspaper war that lasted many years and saw McClatchy invest
significant resources into the paper, including construction of a new
headquarters building in 1986.
Over its rich history, the Anchorage Daily News established a reputation for
journalism excellence, winning two Pulitzer Prizes for Public Service in
1976 and 1989.
Kevin McClatchy, the company's chairman, said, "This is a bittersweet moment
for all of us at McClatchy. We are extremely proud of the Daily News and its
employees, their exceptional service to Alaska's diverse communities and all
of their contributions to McClatchy over the years. However, this sale not
only makes sense from a local ownership perspective, but it also allows
McClatchy to focus more resources on accelerating our digital transformation
to better serve our communities."
About McClatchy:
The McClatchy Company is a leading news and information provider, offering a
wide array of print and digital products in each of the markets it serves.
McClatchy's operations include 30 daily newspapers, community newspapers,
websites, mobile news and advertising, niche publications, direct marketing
and direct mail services. The company's largest newspapers include the (Fort
Worth) Star-Telegram, The Sacramento Bee, The Kansas City Star, the Miami
Herald, The Charlotte Observer and The (Raleigh) News & Observer. McClatchy
is listed on the New York Stock Exchange under the symbol MNI.
About Alaska Dispatch Publishing:
Alaska Dispatch Publishing LLC is the owner and publisher of
AlaskaDispatch.com. Since its inception in 2008, Alaska Dispatch, the
state's sole online-only news organization, has been on the forefront of
reporting on climate change, issues facing rural Alaska, politics and the
oil industry, and its staff has won numerous awards for doing so. Alaska
Dispatch has a team of veteran reporters that are committed to taking an
unflinching look at the state, from its massive riches to its abject
poverty, and telling these stories to Alaskans and to the world.
Additional Information:
Statements in this press release regarding management's future expectations,
beliefs, goals, plans or prospects constitute forward-looking statements
within the meaning of the Private Securities Litigation Reform Act of 1995.
Any statements that are not statements of historical fact (including
statements containing the words "believes," "plans," "anticipates,"
"expects," "estimates" and similar expressions) should also be considered to
be forward-looking statements. There are a number of important risks and
uncertainties that could cause actual results or events to differ materially
from those indicated by such forward-looking statements, including:
McClatchy may not generate cash from operations, or otherwise, necessary to
reduce debt or meet debt covenants as expected; transactions may not close
as anticipated or result in cash distributions in the amount or timing
anticipated; McClatchy's operations have been, and will likely continue to
be, adversely affected by competition, including competition from internet
publishing and advertising platforms; litigation or any potential
litigation; geo-political uncertainties including the risk of war; increased
consolidation among major retailers in our markets or other events
depressing the level of advertising; competitive action by other companies;
and other factors, many of which are beyond our control; as well as the
other risks detailed from time to time in the company's publicly filed
documents, including the company's Annual Report on Form 10-K for the year
ended Dec. 29, 2013, filed with the U.S. Securities and Exchange Commission.
McClatchy disclaims any intention and assumes no obligation to update the
forward-looking information contained in this release.
SOURCE The McClatchy Company
/CONTACT: Ryan Kimball, Assistant Treasurer & Director of Investor
Relations, rkimball@mcclatchy.com, (916) 321-1849
Market News and Data brought to you by Benzinga APIs© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Loading...
Posted In: NewsAsset Sales
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in